Make TAX FREE Passive Income and protect yourself at the same time

Whole life insurance is a great vehicle for saving money.  It serves many purposes, but for this article find out the best way to begin saving money.

When we are young, we don’t think about Life Insurance since many of us are still under the notion that we will either live forever, or our life ending is so far away, but the fact is that we all could have been called to our afterlife yesterday!  Therefor, many don’t see the value in paying premiums on a Whole Life Insurance Policy.  The fact is that the premiums are the cheapest while we are young and healthy.  In addition, the policy has time to accumulate cash growth inside the policy which can be borrowed during our lives.

Wouldn’t it be nice to have the down payment on a home or cash to fund college or a new business venture?  The best policies do charge interest on a loan from the cash value, but if the cash value continues to grow and if you are a smart shopper you will locate an insurer who pays not only interest, but dividends as well.  While the dividends are not guaranteed, a MUTUAL Insurer will likely guarantee the minimum interest and dividend.  The difference between a Mutual insurer and a regular or non- mutual insurer is that the Mutual insurer is par owned be each and every policy owner, which in turn means they please policy holders, not market investors.  You reap the dividends and not the public shareholders.

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People I have met time and time again wish to delay that policy purchase for one reason or another and I cant express enough to tell them it is one of the smartest investments while they are young and healthy, not only for protecting yourself, your family, your estate and loved ones, but you will have accumulated substantial funds within the policy in addition to the face amount!

To date the both the cash growth (there is one or two exceptions consult your adviser) and the face value remain tax free.  Both remain tax free  if you didn’t come home last week and your family can survive.  This is the wisest investment I have ever seen.

As long as you have chosen a premium you can afford even in a budget stretch, you are golden….and what?, you don’t have the money for your mortgage?  If you have purchased that policy many years prior to the home, you can borrow from your policy so as not to lose your car and home.  It is a WIN, WIN, WIN.

6 thoughts on “Make TAX FREE Passive Income and protect yourself at the same time”

  1. This is one thing that I am wishing for my country to have all ordinary Juan an awareness about the importance of having life insurance, personally I find it more useful because of all the things you mentioned above and it builds you a stable future when you get old. And yes I agree it is a win win situation.
    But for some I do understand the hesitation of getting life insurance for the following reason, lack of awareness, information, and low compensation for many.

    • The”insurance” awareness in the Philippines started in the mid 80s however due to unstable economy many insurance companies where most people invested closed-down. Now problems set in….

        • true…. me myself hesitated… because even the “most” stable one got bankrupt years ago.. and of course remember the CAP, the College Assurance Plan.. tsk tsk tsk.. sad fate of those whose children will be going to college by the time their insurance mature CAP is already closed..

  2. When I started to work, I begin to think the security of my future. I dig up my mind and resulted to a good action. I’ve been paying my life insurance until now. If I can’t reap the fruit of my hardworks, atleast my son and the rest of the family will be assured. I even fully paid my own casket.

  3. That’s true, we used educational insurance for my son’s education, also had some cash benefits from it. Having an insurance policy is a wise investment; just choose the reliable ones.


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